I made a huge mistake believing the dogma that people with tech skills, like me, should only start a venture-backed startup. Charlie Munger said, "I like people admitting they were complete stupid horses' asses. I know I'll perform better if I rub my nose in my mistakes. This is a wonderful trick to learn."
Nice spiky point of view, Louie! But I wouldn't go as far to say tech startups that grew big fast under ZIRP are deformed. Part of our entrepreneurial culture is to be pragmatic and make the most of whatever environment we're in. There are many paths to success and saying that ways other than small bets are deformed is a wee dogmatic too 😂
Louie, my friend. Great article. I don't think it is as black and white as you make it but your points are well received. I'm curious what the middle ground is? Chasing the "big win" by joining an early stage company as co-founder or founding engineer vs corporate giant are the two ends of the spectrum. There are many people taking really nice salaries (probably less all-in that Big Tech) and smaller equity comps (less than founder) who are happy with the balance at later stage with balance of cash and equity.
I think you're right about time commitment as freedom to take small bets diminishes greatly when you have a full-time gig but at the end of the day people value things differently.
I also believe the barrier to entry for starting company was at all time lows in last 4 years. More startups = more failures (and marginally more successes). The barrier being low is good but the barrier access to $$$ being low is a bad mix in my opinion.
You’re right the barrier to entry was at an all time low and so all sorts of outcomes were probably more likely. Especially more failure.
And my beef isn’t that, it’s that it’s sold as the only viable path for the serious and I bought it that it’s the only path for folks like me. But in the last decade i’m not even sure it was a great path, never mind the only path. And to me it’s not because of the failures but because even the winners had worms when compared to companies of the past.
Your intro got me thinking: “the dogma that people with tech skills, like me, should only start a venture-backed startup.”
Should simple tech people start any kind of startup at all? As a consultant, I build some SaaS apps for clients but I haven't had any good - not just good but any - ideas on my own.
I use like 4 tools day to day. When I shared a tweet a couple of months ago about my new MacBook and asked what I should install on it, I didn't know 10% of the software they recommend. When you are good with what you have? How do you build a software business then?
Ps: sorry for your property and thanks for putting into new perspective the problems I'm dealing with in my rentals.
The amount of tools out there is pretty crazy. And it’s even crazier that more are launched everyday. And somehow some still seem to take off. And I do agree with you, unless I have a deep need I don’t go searching for new tools.
But yet I also think we overthink. We can just do something a little better sometimes that’s more than good enough to build a good business. E.g Sam Walton with the stores, that wasn’t anything revolutionary, good prices and good service.
I’ve also become a big fan of partnering with people that have good ideas, it’s more fun & easier to generate even more ideas.
But definitely no one answer, and who’s to say it’s gotta be a software business. Maybe it can be something else and we layer software on later.
Thanks for your thoughtful comment, some good food for thought.
I have had two stalled startups that I co-founded with non-technical people (one app made it to the market though), and it wasn't the best experience. I'm almost sure I'd go solo next time. Thanks for the reply
Louie, excellent article as usual.
A small correction to the article (If I may suggest): Bentonville is not in the mid-west. Its in the South.
Haha, thank you Pavan. After all the times we went there I can’t believe I messed that up.
Nice spiky point of view, Louie! But I wouldn't go as far to say tech startups that grew big fast under ZIRP are deformed. Part of our entrepreneurial culture is to be pragmatic and make the most of whatever environment we're in. There are many paths to success and saying that ways other than small bets are deformed is a wee dogmatic too 😂
This is a very fair point.
I guess I dont see too many startups started in the last decade that I find worth admiring anymore. And perhaps I will be proven wrong with time too.
Sounds like the kernel of what could be a good book!
Louie, my friend. Great article. I don't think it is as black and white as you make it but your points are well received. I'm curious what the middle ground is? Chasing the "big win" by joining an early stage company as co-founder or founding engineer vs corporate giant are the two ends of the spectrum. There are many people taking really nice salaries (probably less all-in that Big Tech) and smaller equity comps (less than founder) who are happy with the balance at later stage with balance of cash and equity.
I think you're right about time commitment as freedom to take small bets diminishes greatly when you have a full-time gig but at the end of the day people value things differently.
I also believe the barrier to entry for starting company was at all time lows in last 4 years. More startups = more failures (and marginally more successes). The barrier being low is good but the barrier access to $$$ being low is a bad mix in my opinion.
All the best!
You’re right the barrier to entry was at an all time low and so all sorts of outcomes were probably more likely. Especially more failure.
And my beef isn’t that, it’s that it’s sold as the only viable path for the serious and I bought it that it’s the only path for folks like me. But in the last decade i’m not even sure it was a great path, never mind the only path. And to me it’s not because of the failures but because even the winners had worms when compared to companies of the past.
Great stuff, Louie!
Your intro got me thinking: “the dogma that people with tech skills, like me, should only start a venture-backed startup.”
Should simple tech people start any kind of startup at all? As a consultant, I build some SaaS apps for clients but I haven't had any good - not just good but any - ideas on my own.
I use like 4 tools day to day. When I shared a tweet a couple of months ago about my new MacBook and asked what I should install on it, I didn't know 10% of the software they recommend. When you are good with what you have? How do you build a software business then?
Ps: sorry for your property and thanks for putting into new perspective the problems I'm dealing with in my rentals.
Thanks for the nice wishes Akos.
The amount of tools out there is pretty crazy. And it’s even crazier that more are launched everyday. And somehow some still seem to take off. And I do agree with you, unless I have a deep need I don’t go searching for new tools.
But yet I also think we overthink. We can just do something a little better sometimes that’s more than good enough to build a good business. E.g Sam Walton with the stores, that wasn’t anything revolutionary, good prices and good service.
I’ve also become a big fan of partnering with people that have good ideas, it’s more fun & easier to generate even more ideas.
But definitely no one answer, and who’s to say it’s gotta be a software business. Maybe it can be something else and we layer software on later.
Thanks for your thoughtful comment, some good food for thought.
I have had two stalled startups that I co-founded with non-technical people (one app made it to the market though), and it wasn't the best experience. I'm almost sure I'd go solo next time. Thanks for the reply
Stay safe. Take care is what all comes to my mind now.
P.S: is it kind if you are in water all the time.. get out and you realise you were in water?